TRANSFORMING PERFORMANCE MANAGEMENT: 2018 TRENDS - @ROBCATALANO CHIEF ENGAGEMENT OFFICER, WORKTANGO - HRPA

Transforming Performance Management: 2018 Trends
@RobCatalano
Chief Engagement Officer, WorkTango

8% of companies believe their
  performance management process is
highly effective in driving business value.

“the worst-kept secret in companies has long
been the fact that the yearly ritual of evaluating
 the performance of employees epitomizes the
          absurdities of corporate life.”

                       May, 2016

1911

Frederick Taylor

problems are durable.
  solutions change.

1. what is modern performance
   management and why is it important?
2. five trends of modern performance
   management

3. making the shift - key considerations

4. five places to start

of companies that have redesigned

90%   performance management see direct
      improvements in engagement

      say they see the quality of conversations

83%   between employees and managers going
      up

your workplace has changed
         so should your
performance management process

employees work in days.
      not years.

of executives rate performance

79%   management a high priority, up from
      71% three years ago

      of organizations are 10% more capable
10%   than they were in 2015

trends in
performance management

once a year appraisal        vs        more frequent check-ins

    rearview mirror looking       vs            future focused

focus on evaluating performance   vs   focus on coaching and development

employees evaluated by manager    vs        manager also evaluated

    comp focused on equity        vs       more pay for performance

1. get more agile

agile development
            an approach to
       “help teams respond to
unpredictability through incremental,
    iterative work cadences and
        empirical feedback.”

2. more frequent
   goal setting

aligned more frequently
course-correct quickly
    accountability

Set weekly goals?

3. public and transparent

aligned more frequently
course-correct quickly
    accountability

4. continuous feedback
        structure

real-time feedback

    check-ins

   “always on”

91% say that they now
have better data for people
        decisions

5. enable leaders to be coaches

full-time coaches,
not part-time evaluators

don’t appraise. inspire!

“GE teaches ‘People Leaders’ to ‘inspire
      and empower’ their teams...

 the result: dramatic improvements in
employee engagement, time to market,
       and speed of innovation.”

4 pillars of
agile performance
  management

more frequent         enable leaders to
   goal-setting           be coaches

public & transparent   continuous feedback
      practices              structure

appraisals & ratings &
   comp… oh my!

Should we abolish ratings?

”most of what is being measured by
  the ratings is the unique rating
      techniques of the rater.”

2,000,000 hours

kill the rating. not ratings.

kill the idea that feedback
 can be compressed into
      one single rating

I would award this person the highest
possible compensation increase

I would always want him/her on
my team.

This person is at risk for
                                        YES   NO
low performance

This employee is ready for
                                        YES   NO
promotion today

not what you think.
what would you do?

I would award this person the highest
possible compensation increase

I would always want him/her on
my team.

This person is at risk for
                                        YES   NO
low performance

This employee is ready for
                                        YES   NO
promotion today

decouple compensation?

performance management must
be a development conversation,
      not a pay decision.

remove anxiety from
   the process

remove the anxiety

Get Creative

collection of data /
    committee
                       company only

    OKR only             formulaic

(Overall Base +
Location Base +
 Cost of Living)
  * Role Value

Beginner: 1x
Intermediate: 1.1x
Advanced: 1.2x
Master: 1.3x

Shares or Pay?

Extra for
Dependencies

Adjustment for
Tenure

Senior    Juniour – Star Performer

 $$$              $$$$$

         500% higher compensation

Self
    Success
  Actualization

   Self Esteem
   Recognition

Social
Culture/ Belonging
         & Values

 Safety / Security
  Job Security

 Physiological
Salary & Rewards

Where do I start?

1. build a philosophy

1. what are you trying to achieve?

2. do you have executive buy-in and a shared
   philosophy?

3. what behaviours are expected of leadership and
   management?

2. don’t start with tech

3. start from zero

4. performance management

4. performance development

5. don’t forget employees

more regular
want more regular
                    communication w/
    feedback
                        leaders

  want clear
                    expect continuous
expectations of
                        learning
how things work

thank you

   @RobCatalano
 rob@worktango.io